Air Peace sets precedent with dry lease aircraft acquisition

Following Nigeria’s removal from blacklist globally and the rise in the country’s global aviation rating, Air Peace airline has become the first to receive dry lease aircraft.

Last year, Festus Keyamo, the minister of aviation and aerospace development hinted the new status will see local airlines now access dry lease aircraft.

A dry lease for an aircraft is a long-term rental agreement where the lessor provides only the aircraft, and the lessee is responsible for all operational aspects, including the crew, maintenance, insurance, and fuel. This arrangement gives the lessee greater operational control and is often more cost-effective, as the lessee manages their own crew and resources.

Speaking during the ceremonial arrival of Air Peace’s first dry lease aircraft, Boeing 737-700 at the Murtala Muhammed Airport Terminal 2 in Lagos, Allen Onyema, chairman, Air Peace said the journey of securing an aircraft through dry lease started at the minister’s office who saw the importance of having a vibrant aviation sector, and is always willing to partner with the local airlines, leasing companies and the Nigeria Civil Aviation Authority (NCAA) to ensure Nigeria has a chance to take its rightful place in commercial aviation in Africa.

Onyema said Air Peace has been very diligent in ensuring its aircraft are properly maintained, stressing that it would continue to represent Nigeria well at the international space.

“We make sure that our maintenance is top-notch. We are here on behalf of other Nigerian airlines. We are carrying the visions and aspirations of this country and if we fail, it will be a disgrace.

“Given the support we have received from all arms of government and the Nigerian public, I believe we won’t fail our country,” the Air Peace chairman said.

Onyema commended Festus Keyamo for his relentless efforts in supporting local airlines.

“We need wide-bodied aircraft. Like him or hate him, the minister has changed the face of the country’s aviation industry. In the eight years before he came, it was a struggle for Nigerian airlines. When the minister came on board, he noticed a gap and fixed it.

“Before now, the mantra was that Nigerian airlines lack capacity therefore let us invite foreign airlines to take over. He looked at what to do to support Nigerian airlines so that they can compete. The President also gave the marching order to make this happen,” Air Peace chairman said.

Onyema said most big airlines don’t own some of the aircraft they use as most go to Boeing and Airbus to make orders and the lessors grant them.

“That is why you see one airline having about 400 planes. In Nigeria, every airline owner is expected to buy their own aircraft. When we brought up the issue of aircraft dry-leasing with the minister, he did the necessary things. Today, we have a dry-leased aircraft,” he said.

Keyamo described the arrival of the dry lease aircraft for Nigeria and aviation industry as a whole.

“This is a momentous occasion for Air Peace and the Nigerian aviation industry,” Keyamo stated. “It demonstrates the government’s commitment to supporting local carriers and promoting the growth of the aviation sector.”

He commended Air Peace for its discipline and financial prudence, which have enabled the airline to achieve this significant milestone. He also emphasised the need for local airlines to acquire more aircraft to compete effectively in the international market.

“There is a need for the acquisition of more wide-body aircraft by local operators to compete in the international space,” the minister stated.

Moore Ibekwe, Junior sales director, Africa Region Boeing Commercial Airplanes said three years ago when he took up the job as a sales director for West Africa, East Africa, Southern Africa, and Morocco, only himself and one of his senior finance directors believed that this day could happen.

“However, I want to everyone because we continue to push. They were open to tell us what it would take for us to get here, how we can get aircraft into Nigeria, and I see this as the beginning. Yes, it’s one aircraft, but I can tell you this is the opening point for a better aviation sector,” Ibekwe said.

He said Nigeria needs to take its rightful place in aviation with Air Peace setting the pace.

“Air Peace plays a pivotal role in the Nigerian economy.This is about the region. This is about Africa. This is about us creating opportunities for the future.

“Air Peace hires or employs thousands of people, and their families depend on the airline for their livelihood. And it’s important that we have to support the industry here,” Ibekwe added.

Present at the event was Chris Najomo, Director General of the Nigeria Civil Aviation Authority; Bunmi Kuku, Managing Director Federal Airport Authority of Nigeria, Peter Ryan,

Irish Ambassador to Nigeria, and Kevin Ugwuoke, Financial partners- Executive Director Risk Management at Fidelity bank, who also represented by Kenneth Opara, the Executive Director of the bank, among others.